Prudential To Launch Global Absolute Return Bond Fund
By DailyAlts Staff Prudential Investments, the iconic blue chip asset manager and insurer, launched its first absolute return bond fund back in March 2011, and that fund has growth to more than $2.7 billion in assets. Now, as the the U.S. Federal Reserve’s interest rate policy begins to deviate from that of other central banks around the world, Prudential is preparing for the launch of its newest alternative mutual fund: the Prudential Global Absolute Return Bond Fund , which is expected to debut on or around October 17, according to an August 3 filing with the SEC . As a fund with an absolute return mandate, the Prudential Global Absolute Return Bond Fund will pursue an objective of positive long-term returns, regardless of market conditions. It will seek to achieve this objective by means of a flexible investment strategy with exposure to a wide variety of asset classes, including bonds and other debt instruments, mortgage- and asset-backed securities, currencies, and derivatives. The dollar-weighted effective duration of the fund’s holdings will normally range from -5 to +5 years. What’s different with this fund, versus the firm’s original absolute return bond fund, is that at least 40% of its assets will be allotted to foreign securities (under normal market conditions), including those from emerging markets. There is no such constraint in the original fund. The Prudential Global Absolute Return Bond Fund will be managed by Michael J. Collins, Robert Tipp, and Arvind Rajan, all of whom are managing directors for Prudential Investments. Mr. Collins is also the firm’s Senior Investment Officer, while Mr. Tipp is Chief Investment Strategist and Head of Global Bonds, and Mr. Rajan is Head of Global Macro for the firm. Shares of the new fund will be available in A-, C-, Q-, and Z-class shares. A- and C-class shares will have respective net-expense ratios of 1.20% and 1.95%, while Q- and Z-class shares will each have fees of 0.95%. The minimum initial investment for A- and C-class shares will be $2,500; while the Q- and Z-class shares will have no initial minimums for qualifying investors. Share this article with a colleague